John Lewis is granting its staff an above inflation pay rise this year, following bonus freezes at the retailer.
The partnership will set aside £108m to fund pay rises for the majority of its 69,000 partners.
From 1 April, shop floor staff at John Lewis and Waitrose will receive a 6.9 per cent salary boost, increasing the minimum hourly rate to £13.25 for workers throughout the UK.
The minimum rate for workers within the M25 will jump to £14.80.
Additionally, the company said it would raise the rate of pay for staff with enhanced skills or more specialist positions to £14.31 an hour, climbing to £15.98 within the M25.
The salary boost is the equivalent to an average rise of £1,600 per year for the chain’s shop floor employees.
The news comes as the national minimum wage is set to climb by 50p from £12.21 to £12.71 an hour for employees aged 21 and above from 1 April.
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John Lewis Partnership chief people officer Helen Webb said: “Our partners are the heartbeat of our business.
“This £108 million investment is about putting more money into their pockets month-in, month-out.
“This pay growth demonstrates a sustained commitment to partner pay, consistent with previous years.
“This ensures that the rewards for our partners’ hard work are built into their monthly pay as we continue to invest in the future of the Partnership.”
The move comes after staff at the partnership missed out on a bonus for the third consecutive year last March, despite tripling its profits to £126m.
In June, the business said it was considering reinstating the bonus for the first time in four years, as it claimed it was on track to deliver higher profits.
John Lewis is set to announce its annual results in March, where it is forecast to reveal whether workers will be granted their annual bonus.
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